What is the liability of Endless Summer Sweets for damages caused during the removal of signs from the leased premises?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Right to Enter. Upon the expiration or termination of the Franchise Agreement or the Lease, or the termination of Tenant's right of possession of the Leased Premises, Franchisor or its designee may, after giving reasonable prior notice to Landlord, enter the Leased Premises to remove signs and other material bearing Franchisor's brand name, trademarks, and commercial symbols, provided that Franchisor will be liable to Landlord for any damage Franchisor or its designee causes by such removal.
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- No Liability. By executing this Rider, Franchisor does not assume any liability with respect to the Leased Premises or any obligation as Tenant under the Lease.
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to the 2024 Endless Summer Sweets Franchise Disclosure Document, Endless Summer Sweets is liable to the landlord for any damages that Endless Summer Sweets or its designee causes during the removal of signs and other branded materials from the leased premises. This liability arises when Endless Summer Sweets exercises its right to enter the premises for removal purposes after the termination or expiration of the Franchise Agreement or the Lease, or the termination of the tenant's right of possession.
This means that if a franchisee's agreement ends, and Endless Summer Sweets needs to remove its branding from the location, Endless Summer Sweets is responsible for covering the costs of any physical damage that occurs to the property during the removal process. This could include damage to walls, fixtures, or the building's structure.
However, the document also states that by executing the rider, Endless Summer Sweets does not assume any liability with respect to the leased premises or any obligation as the tenant under the lease. This clause clarifies that Endless Summer Sweets's liability is specifically limited to damages caused by the removal process itself and does not extend to other pre-existing issues or obligations under the lease agreement.